CBN Directs Banks to Halt Charges on Deposits

Initially, individuals were to be charged two percent on deposits exceeding N500,000, and corporate account holders were to incur a two percent charge on deposits over N3 million.

The Central Bank of Nigeria (CBN) has instructed commercial banks to halt charges on cash deposits until the end of September.

The directive was issued in a circular signed by Adetona Adedeji, the Director of Banking Supervision at the bank.

The decision comes after protests from customers at various Deposit Money Banks who opposed the reinstatement of processing fees for cash deposits, which began on May 1.

Initially, individuals were to be charged two percent on deposits exceeding N500,000, and corporate account holders were to incur a two percent charge on deposits over N3 million.

However, the latest circular from the apex bank has ordered a suspension of these charges for the forthcoming three months.

“Referencing our letter from December 11, 2023, with the reference BSD/DIR/PUB/LAB/016/023, we previously suspended processing charges on cash deposits over N500,000 for Individuals and N3,000,000 for Corporates as outlined in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions” published on December 20, 2019.”

“The Central Bank of Nigeria (CBN) is extending the suspension of the 2% and 3% processing fees that were applied to all cash deposits beyond these limits until September 30, 2024.”

The CBN has mandated that financial institutions should continue to receive all cash deposits from customers without imposing any charges until the conclusion of Q3.

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